After the appreciation for several days, PKR depreciated again by 32 paisas on Monday. The demand of dollar is again on hike when importers started opening LCs in fear of potential lockdown.
In the inter-bank market the dollar was traded at Rs. 161.04 compared to Rs. 160.72 on Nov 20.
Previously, the dollar lost against the rupee and was traded at Rs. 158 on Nov 16. The dollar was under pressure for a couple of weeks due to improvement in macro indicators like higher remittances, current account surplus, and increased exports.
President Forex Association of Pakistan, Malik Bostan said:
Importers were waiting for further devaluation of the dollar from Rs. 158 but the rising trend created a panic-like situation and they rushed to book the maximum number of LCs,
On the other hand, banks informed that the dollar was still in surplus and no shortage was noted. The dollar is still easily available in the open market as well.
It was mentioned that the currency experts told that the fear of Covid-19 has forced importers to quickly open LCs so that their requirement could be fulfilled before lockdowns halt transportation in Pakistan and other export markets around the world.
They also added that the UAE’s decision to stop issuing visas to Pakistanis also had a negative impact on the exchange rate. Pakistan receives the second-highest remittances from the UAE after KSA.